Just wondering how other people account for COGS in their financials.
When my wife goes over our financials she highlights that our expenses are very high, ie 50% of revenue. But around 50% of this is buying SMS from Twilio which we on sell to clients at a small margin. Selling SMS is not our core business but we do sell a lot of them so there is 1000’s of dollars in expenses per month just to buy the SMS. It seems to be make our expenses appear much higher than they really are.
How would you report it in accounting?